Bangkok: The Beef Cattle Association is expressing concerns about the potential fallout from tariffs imposed by the United States, which they fear could lead to a significant drop in cattle prices.
According to Thai News Agency, the Thai Beef Cattle Association has sought clarification from Atthakorn Sirilathayakorn, Minister of Agriculture and Cooperatives, on how US retaliatory tariffs might impact the local market. The association has specifically raised concerns about the opening of the import market to a zero-rate tariff, projecting an impact exceeding 500 billion baht. They also urged against amendments to laws that would lift restrictions on red meat accelerators.
During a meeting with the Ministry of Agriculture and Cooperatives, the association discussed the potential repercussions of the "Reciprocal Tariffs" condition, linked to trade negotiations. This measure could directly affect Thai cattle farmers, they warned, with the US retaliatory tariff set at 19%, leading Thailand to reduce import tariffs on US beef to zero. The anticipated consequences are vast, with damages estimated between 450-500 billion baht, affecting beef farmers and associated industries.
The breakdown of estimated damages includes approximately 300 billion baht for cattle and beef, impacting around 10 million head of beef cattle. A further 200 billion baht could affect related sectors such as animal feed and soybeans, due to unfair competition from lower-cost US beef entering duty-free.
Thai cattle farmers have already been struggling with declining beef prices for three years, despite government initiatives to boost exports. Mr. Surachai Pieamkla, Secretary-General of the association, also highlighted concerns about potential amendments to the Ministry of Public Health Announcement (No. 269) of 2003. This announcement currently prohibits contamination with red meat accelerators, and lifting the restriction could allow banned substances into the market, severely affecting over two million cattle farmers and households.
In response, the Minister of Agriculture and Cooperatives assured farmers of his concern for the agricultural sector and promised to forward their complaints to relevant agencies for urgent attention.